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“An increase in the DRO maximum debt threshold and a higher creditor petition limit for bankruptcy is welcome news for people struggling with debt.

“Increasing the DRO threshold to £20,000 is an important widening of access to this crucial form of debt relief for those on low incomes and with limited assets. Raising the creditor petition for bankruptcy to £5,000 is a much needed change that will prevent creditors making people bankrupt for an unreasonably small debt.

“Funding for the costs of setting up DROs must be made more sustainable. At present, 80% of DROs are arranged by charities and the free advice sector, but current funding arrangements do not nearly match the costs charities face in delivering them. Charities effectively have to meet the bulk of the cost for a state run insolvency scheme. The next government must act to put in place adequate funding to help charities to cover their costs and ensure that people struggling with debt have access to this vital debt solution”.

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